The false expectation that Australia would see interest rates tumbling by now has played a significant role in dampening the spring sales season, according to industry researcher CoreLogic.
Its newly-released numbers show prices have continued to hold their ground but the number of transactions were less than historic norms.
For the three months ending November 30, values increased by an average 0.5% – a significant tapering compared with the 2.2% recorded in the quarter ending April 30.
The thing to remember is that each increase is incremental. For owners, the value of their homes remains incredibly durable at a time of significant affordability pressures.
Of course, we’re talking averages and so there have been winners and losers.
In the winners circle is the lower-quartile of the markets in Adelaide, Perth and Brisbane.
The cheapest 25% of properties sold in these cities all rose in value: Adelaide (4.7%), Perth (4.5%) and Brisbane (3.1%)
The strugglers were at the expensive end of the market in Melbourne (-1.4%) and Sydney (-1.6%).
Spring sales were down -4% on the five-year average, according to CoreLogic. There were approximately 133,000 sales.
It said: “Across the cities and regions, there was a lot of variation, with Sydney sales -15.1% lower than historic averages, and Adelaide sales 15.8% higher.”
There were 42,771 sales in November, taking the annual count to 527,688 in the 12 months to November.
Days on market increased to 32 days. In the spring of 2023, properties stayed on the market for just 27 days.
CoreLogic said the median vendor discount was steady at 3.6% – a sign of sellers instinctively holding the line on values.
On the investor front, rent growth slowed nationally to 5.3% annually, the slowest annual change since April 2021.